— This is the script of CNBC's news report for China's CCTV on January 15, 2018, Tuesday.
The top priority for Saudi Arabia, this major oil producer who experienced a volatile jump is taking the lead to cut to support oil prices and pushing the member states in OPEC, as well as Russia who is also in CUT DEALS, to cut collaboratively, reducing market price volatility. Khalid al-Falih, Saudi Oil Minister, seems dissatisfied with the scale of the Russian cuts, complaining that Russia's cuts are lower than his expectation.
Saudi Oil Minister Khalid al-Falih
Russia has started, slower than I'd like, but they've started…. I am sure as they did as in 2017 they'll catch up and be a positive contributor to rebalancing the market,
He also comforted the market, saying oil market in on the normal trajectory and will return to balance soon, but the premise is oil producers have to do more when in need. Saudi also announced that Saudi's oil exports will decreased to 7100,000 barrels/day in Feb, which is lower than 72000,000 barrels/day in Jan. at the same time, Falih said, in order to do some necessary adjustment to oil outputs, they are willing to cooperate with outsides, including the U.S., to re-balance the market. It's no doubt that these words do delivery a strong hope of Saudi that it is impatient to hike oil prices.
OPEC+ production control committee will hold a meeting in Feb, discussing the impact of the oil production cut agreement on the market. We also have an exclusive interview with Mohammed Barkindo, OPEC Secretary General, he actually voiced some worries over global demands, thinking the global trade frictions caused by the U.S. will negatively impact oil demands of major economies.
Barkindo also appealed to the U.S. that all of us are on the same boat, cooperation is the only way.
Mohammed Barkindo
OPEC Secretary General
As I told them in Houston when we met we are all in the same industry we are in the same boat and this cycle that we passed through had proven to us that what is good for OPEC is good for the United States.
Notable news is Saudi Aramco is still on the track to go public, proposed timing is between 2010 and 2021. We will keep an eye on this issue.